Credit Cards and You: Service Fees on Credit Card Transactions

Inactive credit balance fees

If there has not been any activity on your credit card for a certain period of time — usually at least a year — some credit card issuers will charge you a fee for maintaining an inactive account. If you are carrying a credit balance (that is, if the credit card issuer owes you money), the issuer might send you a cheque. However, if you have carried a credit balance for a long time, some credit card issuers may charge you an inactive credit balance fee, which can amount to as much as $30 a year.

If you no longer need your credit card, make sure you contact your card issuer to cancel it. However, it is important that you obtain confirmation in writing from the card issuer that your credit card has, in fact, been cancelled and that the balance has been paid in full. Simply cutting up your card does not automatically cancel it, even if your credit card has expired. You may still have to pay an inactivity fee, since you did not cancel the card.

To learn more about credit balances, see FCAC's publication Managing Your Money.